If supply is upward-sloping and demand is downward sloping, what happens to the equilibrium real, risk-free interest rate and quantity of real loanable funds per time period if there is a decrease in government deficits:

a. The real risk-free interest rate rises and the quantity per time period falls.
b. The real risk-free interest rate rises and the quantity per time period rises.
c. The real risk-free interest rate falls and the quantity per time period falls.
d. The real risk-free interest rate falls and the quantity per time period rises.
e. The real risk-free interest rate falls and the quantity per time period is uncertain.


.C

Economics

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